All Forum Posts by: Matt Harris

@Chris Davidson

Thank you, Chris! Much appreciated. I’ll be looking into that now.

@Sean McDowell

You make some really good points. I do have some reserves set aside that I didn’t really include in my first message. I was also thinking about talking with them to make sure they have a certain amount of reserved capital as well. That is, if they want to do the deal that way. If not, I can work around it with my reserves.

I will certainly be discussing a fair rate that they expect and making sure that works for me as well.

I had not thought about whether they’d want to have say on decisions. That’s a good thing to decide on, since that could have an influence over rates and the amount of capital they want to lend.

The advice is very much appreciated! Thanks!

@Paul Defngin

Thank you for your advice! Absolutely, I want to make it fair for them. I’ll be having a thorough conversation with them soon!

@Nicholas L.

Yes, it would be my first BRRRR. The duplex is already appraised for 115k. It's a personal distress deal that the owner wants to get out of. I've ran many scenarios. There's always the risk of it not appraising as high as expected. I just wanted to throw numbers out, so it could give a rough idea of what kind of deal I would be doing with my family member. Do you have any suggestions on how you would break down finances with a family member in this type of BRRRR?

I have a duplex picked out that need some work. I also have a family member that is eager to lend some money and get in on some real estate investing. I wanted to get some opinions on the best way to go about paying the family member back to make it fair for both parties as well as making sure I give them a fair return on their investment.

I believe I can buy this duplex for around $80k. (I'm from a very rural area where we can still find some reasonably priced real estate) With about $20k of rehabbing I can make this duplex worth around $150k, or more, based on others in the area. I have about $60k in reserves right now and would need to borrow the other $40k. I would be doing the rehabbing myself, besides a few small electrical and plumbing jobs that i would hire out. The rehab should take about 2-3 months.

If anyone could give me some pointers on what a fair return for the family member would be? If anyone has some examples of deals they've done like this I would love to hear about them!

I have a duplex picked out that need some work. I also have a family member that is eager to lend some money and get in on some real estate investing. I wanted to get some opinions on the best way to go about paying the family member back to make it fair for both parties as well as making sure I give them a fair return on their investment.

I believe I can buy this duplex for around $80k. (I'm from a very rural area where we can still find some reasonably priced real estate) With about $20k of rehabbing I can make this duplex worth around $150k, or more, based on others in the area. I have about $60k in reserves right now and would need to borrow the other $40k. I would be doing the rehabbing myself, besides a few small electrical and plumbing jobs that i would hire out. The rehab should take about 2-3 months.

If anyone could give me some pointers on what a fair return for the family member would be? If anyone has some examples of deals they've done like this I would love to hear about them!

Hey @Salvatore Lentini!

Just wanted to share with you, and others, my thoughts and maybe see if I can get some feedback!

I’m currently a full time student in my senior year of college. With that being said I obviously don’t have that much money to be throwing into down payments. I know there’s ways around this by using “OPM” as in loans, partnerships, etc. but I just haven’t done enough research into it to feel comfortable attacking a plan. I will continue my research into this.

Second of all, I am from a very very small town in Maine(like 1200 people small). I’m also 2 hours away from the nearest city which has about 32,000 people. So, I feel this market isn’t the best place to invest my time and money. I don’t have the time (within the next few months anyway) to travel since I have huge exams coming up that I’m studying for. I also feel that I shouldn’t be buying rental properties a long ways away when first starting out.

If anyone has any tips or has been in the same situation of buying rental properties in very small town please let me know. Any tips would help. I really love how helpful this BP community is and hope some of you could help me!

Thanks!

-Matt

Hello!

I have just started my journey to becoming a real estate investor. I have begun reading and researching as much as I can on a daily basis while being a full time student in Maine. I have not bought my first property yet as I am just beginning to expand my knowledge. I have one question that makes me nervous when thinking about buying my first rental property.

With the extended ban on evictions, how is it possible for rental property investors to survive? If many of your tenants stop paying, how can you afford all of your mortgage payments?

Maybe this goes back to the screening process and making sure that you have good tenants that will always make their payments, but I feel that there is still a chance they won’t.

Thank you in advance for any knowledge you can pass along to a newbie like me!